ZGXT(SZ:000831) Sou Hu Cai Jing·2025-06-08 11:05Core Viewpoint - The article discusses the strategic importance of rare earth elements (REEs) in modern technology and highlights China's dominant position in the global REE market, while also addressing the challenges faced by Russia and India in attempting to break this monopoly [1][9]. Group 1: China's Dominance in Rare Earths - China is referred to as the "unofficial king" of the global rare earth industry, holding a significant technological lead over Russia and India, which have substantial reserves but lack the capability to compete effectively [1][9]. - The country has a complete control over the REE supply chain, from resource extraction to advanced technology development, making it difficult for other nations to replicate this model [17][25]. - Approximately 85% of the world's permanent magnet production capacity is concentrated in China, underscoring its critical role in various high-tech applications [15]. Group 2: Russia and India's Challenges - Russia possesses 3.8 million tons of rare earth reserves, but 80% of these are located in the Arctic, making extraction costly and technologically challenging [3]. - India has 6.9 million tons of rare earth reserves but relies heavily on imports from China to meet its military needs, spending $1.2 billion on Chinese permanent magnet materials last year [3][7]. - The proposed strategic cooperation between Russia and India aims to establish a processing facility to bypass China, but both countries face significant technological and infrastructural hurdles [3][4]. Group 3: China's Strategic Actions - China has implemented three major actions to maintain its leading position in the REE market, including strategic integration of state-owned enterprises to consolidate resource allocation and industry development [9][11]. - Chinese companies are actively acquiring overseas REE mines, such as the acquisition of Australia's PEK company, which includes significant reserves in Tanzania and a refining facility in the UK [11][13]. - The focus has shifted from merely selling resources to enhancing technological depth and the completeness of the industrial chain, making it harder for competitors to catch up [13][17]. Group 4: Technological Advancements - China has made significant breakthroughs in rare earth technologies, such as magnetic refrigeration, which could be applied in cutting-edge fields like quantum computing [15]. - The number of patents related to rare earth materials in China has surged, with over 5,800 new patents filed in 2024 alone, far surpassing those from Japan, South Korea, and the United States [15]. - The complete control over the REE supply chain, from resource extraction to technological innovation, creates a robust competitive advantage that is difficult for other nations to replicate [17][25]. Group 5: Future Considerations - The competition for rare earths is not only about market dynamics but also involves national governance and the ability to prevent technology leakage and corruption within the industry [23][25]. - Continuous reform and innovation in technology and talent development are essential for maintaining a strong position in the global REE market [27]. - The geopolitical landscape surrounding rare earths is evolving, with the potential for significant impacts on global technology industries depending on which nation can effectively control these resources [27].